The government will provide financial support for domestic companies in developing the next generation of 5G wireless networks to enhance the country's global competitiveness, sources close to the matter said Monday.

The government aid, expected to be worth around ¥70 billion, will go to firms including electronics makers and telecommunications companies, the sources said, as Japan tries to play catch-up with China in the global race for 5G.

The funds will come from the ¥110 billion the government has earmarked for the New Energy and Industrial Technology Development Organization under its supplementary budget for fiscal 2019, according to the sources.